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BII posts 36% increase in net profit in 2008
Publicly listed Bank Internasional Indonesia (BII) recorded a 36 percent rise in its audited 2008 net profit from a year earlier, boosted by strong loan growth and the return to form of a key subsidiary
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Publicly listed Bank Internasional Indonesia (BII) recorded a 36 percent rise in its audited 2008 net profit from a year earlier, boosted by strong loan growth and the return to form of a key subsidiary.
BII’s net profit for 2008 was 480 billion (US$44 million), according to a media statement sent Thursday.
“BII has emerged in good shape from a year of change” president director Henry Ho said.
Lending growth was booked across the board, including a 36 percent growth in consumer banking, 22 percent growth in SMEs and the commercial sector and a 14 percent growth in the corporate sector.
Consumer lending rose to Rp 12.1 trillion, commercial lending and lending to SMEs to Rp 13.1 trillion, and lending to the corporate sector to Rp 9.9 trillion.
While growth in lending remained high, the bank posted a non- performing loans rate of 1.93 percent, which is a five-year low.
“Despite relatively high inflation, we have controlled costs while continuing to expand our network of offices and electronic channels.”
The central bank increased its key interest rate by 3 percent between May and early December last year, a move that slightly slowed down growth in lending in the banking industry.
The central bank said the banking sector had channeled more than 30 percent more lending in 2008 than in the previous year — one of the highest growths in history.
BII said the 3 percent rise in the BI rate had slowed down lending growth, although its full-year performance remained fairly solid.
Also a positive contributor to BII’s performance was the success of its key unit, financing firm Wahana Ottomitra Multiartha (WOM), which posted a net profit last year having posted a huge loss in 2007.
WOM posted a profit of Rp 21 billion in 2008, compared to a loss of Rp 282 billion in 2007, thanks to an expansion of its network last year, which saw 38 new offices opened.
As of Dec. 31 of last year, BII was 97.52 percent owned by Malaysia’s Malayan Banking Berhad (Maybank) through its units, Sorak Financial Holdings Pte Ltd (54.33 percent) and Mayban Offshore Corporate Services SDN. BHD (43.19 percent).
Investing public controls the remaining 2.48 percent.
